Firefly forced to postpone next launch because of security issues
Capitalism in space: Firefly has been forced to postpone its next launch of its Alpha rocket, tentative scheduled for late January, because the federal government wants the Ukranian investor — who essentially saved the company when it went bankrupt — to completely divest himself of any ownership.
Noosphere Venture Partners, a fund run by Ukrainian-born investor Max Polyakov, said Dec. 29 that it will retain an investment banking firm to sell its interest in Firefly. That sale comes at the request of the Committee on Foreign Investment in the United States (CFIUS), the company said.
Polyakov invested $200 million to bring the company from the ashes when it was about to be liquidated in bankruptcy proceedings. He left its board of directors last year and reduced his share in the company last year in an effort to ease these same concerns. Apparently that wasn’t good enough, even though his ownership was not a problem when the company obtained a lease for a launch site at Vandenberg Space Force Base.
Though there might be a real security issue, we must not dismiss the possibility that this is a corrupt power play by people in Washington to use Polyakov’s foreign roots to push him out so that they can replace him, now that the company is healthy and moving forward after Polyakov saved it.
I know this is a cynical suspicion, but based on the behavior of our Washington bureaucracy and legislators in the past decade, it is far from an unreasonable one.
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Capitalism in space: Firefly has been forced to postpone its next launch of its Alpha rocket, tentative scheduled for late January, because the federal government wants the Ukranian investor — who essentially saved the company when it went bankrupt — to completely divest himself of any ownership.
Noosphere Venture Partners, a fund run by Ukrainian-born investor Max Polyakov, said Dec. 29 that it will retain an investment banking firm to sell its interest in Firefly. That sale comes at the request of the Committee on Foreign Investment in the United States (CFIUS), the company said.
Polyakov invested $200 million to bring the company from the ashes when it was about to be liquidated in bankruptcy proceedings. He left its board of directors last year and reduced his share in the company last year in an effort to ease these same concerns. Apparently that wasn’t good enough, even though his ownership was not a problem when the company obtained a lease for a launch site at Vandenberg Space Force Base.
Though there might be a real security issue, we must not dismiss the possibility that this is a corrupt power play by people in Washington to use Polyakov’s foreign roots to push him out so that they can replace him, now that the company is healthy and moving forward after Polyakov saved it.
I know this is a cynical suspicion, but based on the behavior of our Washington bureaucracy and legislators in the past decade, it is far from an unreasonable one.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either. IMPORTANT! If you donate enough to get a book, please email me separately to tell me which book you want and the address to mail it to.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
It sucks having these changes occur with no real understanding of the problem. I have payload launching the rocket and now it is delayed. All it does is hurt my business in the long run.
Joe:
Curious if you have an ‘opt-out’ clause if there are unforeseen delays, or are you locked into the contract, regardless?
Probably a long shot, but could this be a small piece of distancing ourselves from Ukraine, leaving them twisting in the wind in front of Putin?
Jester Naybor:
Maybe. However, I think America has no business in Ukraine either way.
Regardless, the “space transportation business” really seems to me to be one of the hardest ways to make a profit. High risks at all fronts.
High risks at all fronts.
Questioner, that is true … as it has been since the first watercraft left sight of the shore. To the point that in many cases it took the plausible promise of great wealth at the destination, to motivate the design and use of such transport … Columbus and others sought access to the known wealth of the East, for example. Would the American transcontinental railroad been built if it had not been established that California also possessed such wealth?
That being said, it is particularly interesting that men – from the Wrights to Musk – have sought to leave contact with terra firma when the return-on-investment for doing so is far less certain.
The Big Guy didn’t get his ten percent?
If foreign ownership is a problem, what of SpaceX (Musk dual citizenship) and Rocket Lab (Beck)? Or is it just ties to certain countries that are forbidden? Then what of the Biden’s ties to the Ukraine?